Remember that 59.6 carat pink diamond that was auctioned for $83.2 million at Sotheby's? Well, the buyer defaulted and now the company has to take it back into inventory.

Oops.

According to Ron Dottin, US Quantitative Research Strategist at RBC Capital Markets, Sotheby's has other concerns.

"Even before this event, we found that pricing power at the company has been eroding for some time," says Dottin on CNBC's Street Signs' Talking Numbers segment. "When you just look at the ratio between sales growth and accounts receivable growth, it's actually been decelerating for a couple of quarters, which is an indication that it's really been tough sledding in terms of pricing."

Meanwhile, JC O'Hara, Chief Market Technician at FB Securities, has three views on the stock: For the long-term, he is neutral; for the intermediate-term, he's bullish; but, on the short-term, he sees the stock under pressure.

"What really stands out to me is the inability to break above that $54 - $55 level," says O'Hara looking at a seven-year chart of the stock. "That actually created over the last few years a triple top. We all know that's actually pretty bearish. Owners saw that and they're selling their shares."

O'Hara is watching the stock's 200-day moving average. "That has a great telltale sign about how the stock is going to perform," he says. "When price is above the 200-day moving average, it tends to stay there for some time and the returns tend to be pretty good. Below the 200[-day moving average], you get the opposite effect."

With news of the pink diamond default, the stock is near its 200-day moving average of $46.55. If it breaks below that, "downside risk will definitely increase," says O'Hara.

To see the full discussion on Sotheby's between Dottin on the fundamentals and O'Hara on the technicals, watch the video above.

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